(Reuters) – Publicis raised its organic growth target for 2024 on Thursday after a better-than-expected first half.
On the Paris Stock Exchange, at around 08:00 GMT, the share price rose 5.6%, taking first place in the CAC 40 index, which for its part posted a slight increase of 0.06%.
The advertising group’s net revenue stood at 3.46 billion euros in the second quarter, representing organic growth of 5.6%, above expectations.
The group is now targeting organic growth of between 5% and 6% for the year, compared to an increase of 4% to 5% previously expected.
Despite “persistent macroeconomic uncertainties,” the group is confident in its ability to accelerate in the second half, Publicis said in a statement.
Publicis expects to hit the high end of its forecast range if its clients end their “wait-and-see” attitude and increase spending on digital transformation.
Its data-driven subsidiary, Epsilon, continued to support the group’s performance by establishing individualized consumer profiles, CEO Arthur Sadoun said during a press conference call.
The group also confirmed its operating margin and free cash flow targets for 2024.
“Publicis continues to outperform peers on mix and share gains in media, supported by its leadership role in personalization at scale,” said a note from JP Morgan.
According to the note, the increase in forecasts announced by the French group would imply an underlying increase in profit of around 1% for 2024, adding however that this increase will probably be offset by the recent strengthening of the dollar.
(Leo Marchandon, Dagmarah Mackos and Clement Martinot; Camille Raynaud and Pauline Foret)
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